The Interactive Effects of Report Integration and Strategy Communication on Investors' Reactions to Corporate Social Responsibility Measures

• In Event: Accounting Behavior and Organizations

Abstract

Contrary to the touted benefits of integrated reports, recent research shows that corporate social responsibility (CSR) measures in an integrated report affect nonprofessional investors' judgments and decisions to a lesser degree than CSR measures in a stand-alone report. We find that communication of CSR-related strategic objectives and the causal connection between CSR performance and financial performance elevates nonprofessional investors' weighting of CSR measures in their judgments and decisions. Moreover, the positive effect is more pronounced in an integrated report than in a stand-alone CSR report. This study highlights the importance of strategy information and connectivity information and documents the supporting role of report integration in integrated reports.

Authors

• Lei Wang, University of Northern Iowa

• Lei Dong, University of Idaho